Arthur Hayes reversed his ETH sell-off, buying $7.93M as whales and institutions fuel Ethereum’s strong $4,200 rally.
Over 1M ETH worth $4.17B was scooped by big investors since July, driving a 45% price jump from $2,600 to $4,000.
Low Ethereum gas fees at $0.53 are boosting on-chain activity, making the network more attractive for traders and users.
Ethereum’s price surge to $4,200 has reignited whale activity and prompted Arthur Hayes to reverse a major profit-taking move. Just last week, Hayes sold roughly $8 million in ETH, expecting a drop to $3,000. However, the rally invalidated his bearish call, forcing him to re-enter aggressively.
Within 19 hours, he purchased $7.93 million in Ethereum ecosystem tokens, including 1,500 ETH at $4,233, alongside LDO, ETHFI, and PENDLE. The swift pivot reflects growing confidence in Ethereum’s momentum despite recent macroeconomic concerns.
Besides Hayes, institutional wallets have quietly accumulated over 1.035 million ETH since July 10, worth about $4.17 billion, as per EmBerCN. This buying spree drove prices from $2,600 to $4,000 in just one month—a 45% gain.
The majority of these holdings, which had an average purchase price of about $3,546 each, are owned by big funds and publicly traded firms in the United States. As a result, wealthy investors are setting up for future gains, despite the fact that overall economic indicators are still conflicting.
Macro Pressure Meets Market Optimism
Earlier, Hayes warned that sluggish credit growth and weak U.S. job data could push Bitcoin back to $100,000 and Ethereum to $3,000. He cited renewed tariff fears after the July Non-Farm Payrolls report showed only 73,000 new jobs.
Consequently, he sold over $13 million in crypto holdings, including ETH, Ethena, and Pepe. However, the market’s strong recovery has overpowered these fears for now.
Ethereum's fundamentals have also improved. As of August 8, average gas prices have fallen sharply from their peak of $8 in late 2024 to just $0.53. In the past, this low-fee environment has preceded price rallies and fueled on-chain activity.
Source: Merlijn The Trader
The usage of decentralized apps is encouraged by Ethereum's lower costs, which make it more competitive with less expensive blockchains.
Low Fees Signal Potential Price Expansion
The current transaction cost trend points to reduced network congestion and improved efficiency. Since February 2025, average fees have stayed mostly below $2. Consequently, smaller traders and retail users are returning to the network, adding fresh liquidity.
History shows that such conditions often lead to sustained upward moves in ETH’s price. If momentum holds, Ethereum could see another leg higher in the coming weeks.
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